Crypto companies who attempt to imitate traditional banks have , all failed spectacularly

Crypto companies who attempt to imitate traditional banks have , all failed spectacularly

#Crypto #companies #attempt #imitate #traditional #banks #failed #spectacularly

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UnarmedTourist

That’s because goverments will bail out a bank when it fails and exchanges don’t have that privilege yet.

Baecchus

Unbank yourself with Celsius. By losing every penny.

ThatOtherGuy254

It’s almost like cryptocurrencies weren’t supposed to be centralized.

Whole_Visible

These crypto lending companies were depositing into DeFi and lending to other highly speculative crypto startups. A bank takes people’s deposits and can buy US treasuries. They give out car and home loans where they can seize the assets on failure to pay. Crypto companies are not operating to the standards of traditional banks

coinfeeds-bot

tldr; Crypto lending companies like Voyager Digital, Celsius and BlockFi have either filed for bankruptcy protection or gone out of business. The collapse is reminiscent of the 2008 financial crisis, but on a much smaller scale. There is no deposit insurance, government stopgap, or even a privately run entity to protect depositors if their crypto bank were to fail.

*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

Electrical_Potato_21

DeFi has its own problems, especially with hacks and rugpulls, but it is quite telling that the companies that went under after the Terra and FTX crashes were pretty much all centralised ‘trad-fi’-based crypto companies.

Skorpex

Everyone comes to Bitcoin at their own speed

marsangelo

The point is to, you know, make sure theyre not doing that in the first place

Primary_Technical

Traditional finance has its grip around the established systems. The change can’t happen in a day but will gradually take place with time .

kirtash93

That’s because banks have privileges that crypto companies don’t. That and that governments save banks.

masstransience

But haven’t you heard from CZ that Binance is triple secure and way more funded than any bank no matter what you have to say.

Jocogui

Copycat working businesses, it was supposed to happen, now we’re in a cleanup stage which is good for refining the environment.

Shiratori-3

Looking at many of those involved and their financebro backgrounds, was it ever going to end any other way? 3 Arrows Capital, SBF, etc?

No_Dream5562

Banks have failed more times than we can count,but Govt bails them out everytime banks fails.

nzubemush

Meaning banks would have failed drastically but for government bailouts. What a system!

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